US CPI expected to moderate as Senate hangs in the balance, Bank of England policy likely dictated by Treasury budget.
November 10, 2022
GBP/USD 1.1389 GBP/EUR 1.1394 EUR/USD 0.9996 USD/CAD 1.3527 EUR/CHF 0.9848 EUR/SEK 10.8896 EUR/NOK 10.3903 EUR/DKK 7.4397 USD/ILS 3.5567 AUD/USD 0.6407 NZD/USD 0.5862 USD/SGD 1.4020 USD/JPY 146.25 USD/CNH 7.2522 USD/INR 81.7889 EUR/ILS 3.5551 GBP/ILS 4.0507 USD/ZAR 17.8042
The Bank of England will be keeping a very close eye on the Chancellors autumn statement when it’s released next week. Spending cuts and tax rises are expected, however there is uncertainty around how the government are approaching the issue. Forecasts see the government announcing £30 billion of consolidation by the end of 2025, with borrowing costs peaking at 4.25%.EUR
The ECB has raised the limit for the Euro system's securities lending against cash collateral to £250 billion from £150 billion as of Nov. 10. Schnabel has said that this was a precautionary measure to ease collateral scarcity.USD
US inflation is expected to moderate slightly in the October data on Thursday. An above-forecast reading could scrap expectations of a federal reserve downshift to a 0.5% hike in December. Economists project the CPI has cooled on an annual basis, but the reading is anticipated to remain consistent with persistent and elevated inflation.
From Tuesday’s midterm elections, the republicans have made some progress in the House of Representatives while the vote for the Senate is on a knife edge. Georgia, one of the three remaining states will be decided by a run-off vote in a months’ time.ASIA/PACIFIC
Joe Biden expects to discuss issues including Taiwan and trade with Xi Jinping at the G-20 summit in Indonesia next week.
South Korea announced $7.3 billion in financing for the property market, as part of a larger aid package for the credit market.ILS
Israel sold $12.9 billion worth of bonds this year as of Nov. 9. This is down 61% compared to the same period last year. USDILS trades 0.1% higher intraday.Data & Events
US Initial Jobless Claims
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